SEATTLE, May 13 Pacific Biomarkers, Inc. (OTC Bulletin Board: PBMC) ("PBI"), a leading provider of biomarker laboratory services and contract research services, today announced its operating results for the third quarter and first nine months of FY2010.
For the three months ended March 31, 2010 (the third quarter of FY2010), revenue decreased 22% to $2,233,698, compared with $2,853,222 in the third quarter of FY2009. Operating loss totaled $238,047 in the third quarter of FY2010, versus operating income of $206,691 in the prior-year period. The Company reported a net loss of $393,259, or $0.02 per share, for the three months ended March 31, 2010, compared with net income of $197,808, or $0.01 per share, in the three months ended March 31, 2009.
Revenue for the nine months ended March 31, 2010 decreased 16% to $6,648,868, compared with $7,889,177 during the corresponding period of the previous fiscal year. An operating loss of $758,792 was recorded in the first nine months of FY2010, versus operating income of $547,824 in the same period last year. Net loss for the nine months ended March 31, 2010 totaled $1,124,038, or $0.06 per share, compared with net income of $1,168,742, or $0.06 per share, in the year-earlier period.
"Our results for the most recent quarter reflect the continuing challenge of operating in a chaotic drug development environment," commented Ron Helm, Chief Executive Officer of Pacific Biomarkers, Inc. "Although revenue this quarter fell short of the prior year, we believe that as our market stabilizes, pharmaceutical and biotech companies will increase their utilization of outsourcing and biomarker services in their quest to reduce the cost of developing new drugs and diagnostic products and services. We are well-positioned to execute our strategic growth plan as our customers adjust their business models to reflect the changing nature of their industries and markets. PBI began to see increases in signed contracts during the third quarter that should provide significant revenues during the first two quarters of fiscal 2011. In fact, we are very encouraged that our expected level of signed contracts for revenues to be realized in the next fiscal year will be greater than during any previous year in the Company's history."
"We expect a continuation of challenging market conditions at least through the fourth quarter of fiscal 2010. Earlier, we anticipated a substantial improvement in fourth quarter revenues from the previous three quarters of fiscal 2010. That would have kept annual revenues for fiscal 2010 not materially below fiscal 2009 revenues. While we should still see improvement in fourth quarter revenues, we expect fiscal 2010 to be below last year's record revenue. We have made appropriate adjustments to our current operating plan, where possible, that will allow us to continue our investments in the biomarker services business. Although recent operating results were disappointing, we have continued to maintain a strong balance sheet, with cash and cash equivalents totaling $3,310,961 as of March 31, 2010. This positions the Company to allocate appropriate resources to support growth initiatives in our service areas," concluded Helm.
For additional information, see Pacific Biomarkers' annual report filed with the SEC on Form 10-K for the fiscal year ended June 30, 2009 and the quarterly report filed with the SEC on Form 10-Q for the fiscal quarter ended March 31, 2010.
About Pacific Biomarkers, Inc. (PBI)
Established in 1989, PBI provides biomarker laboratory services and contract research services to support pharmaceutical and diagnostic manufacturers conducting human clinical trial research. The Company provides expert services in the areas of cardiovascular and musculoskeletal diseases, diabetes, obesity, and nutrition. The PBI laboratory is accredited by the College of American Pathologists, New York State, and the Lipid Standardization Program. PBI's clients include many of the world's largest pharmaceutical, biotech, and diagnostic companies. PBI also provides clinical biomarker services focusing on the emerging field of biomarker assay development and testing. Services include validating and performing custom assays for novel clinical biomarkers, immunogenicity testing, cell-based assays, mass spectrometry, and multiplex testing.
PBI is headquartered in Seattle, Washington, and its common stock trades on the OTC Bulletin Board under the symbol "PBMC". For more information about PBI, visit the company's web site at www.pacbio.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release includes forward-looking statements including, but not limited to, the following: levels of signed contracts and recognition of revenue; growth in revenues and backlog; results of business development activities; financial results; future growth; and the viability and acceptance of its established and new services, including the Company's biomarker services. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those described in the forward-looking statements. These risks include, but are not limited to, the following: the Company's ability to enter into contracts for its laboratory testing or biomarker services; client changes or early terminations of studies; variability in backlog; the success of marketing and business development efforts, and competitive factors; the Company's ability to manage growth; and other risks and uncertainties set forth in periodic filings with the U.S. Securities and Exchange Commission (including Form 10-K for the year ended June 30, 2009).
For additional information, please contact: Ron Helm, CEO at (206) 298-0068 or RJ Falkner & Company, Inc., Investor Relations at (800) 377-9893 or via email at email@example.com
SOURCE Pacific Biomarkers, Inc.